WASHINGTON (Reuters) – Output at U.S. factories unexpectedly fell in June as motor vehicle production dropped amid an unrelenting global semiconductor shortage.
Manufacturing output dipped 0.1% last month after accelerating 0.9% in May, the Federal Reserve said on Thursday.
Economists polled by Reuters had forecast manufacturing output climbing 0.2% in June. Output at factories grew at a 3.7% annualized rate in the second quarter after increasing at a 2.3% pace in the January-March period.
Manufacturing, which accounts for 11.9% of the U.S. economy, is being supported by massive fiscal stimulus, low interest rates and continued strong demand for goods even as spending is shifting back to services. At least 160 million Americans have been fully vaccinated against the COVID-19, boosting spending on…